EU Ukraine Oil Loan Faces 90 Billion Block Amid Druzhba Pipeline Dispute
The EU Ukraine oil loan now faces a major hurdle from Hungary. Budapest plans to block the 90 billion euro support package for Ukraine. Officials want shipments restored through the Druzhba pipeline first. Therefore, energy supply has become central to this financial decision.
Supply Halt Sparks Regional Tension
Flows stopped on January 27 after reported infrastructure damage. Ukraine blamed a drone strike for the disruption. Meanwhile, Slovakia also depends on this supply route. Both nations run refineries using Russian crude. As a result, the delay has raised concerns across the European Union. For example, refiners now face operational pressure.
Political Dispute Deepens
Foreign Minister Peter Szijjarto criticized the transit halt on X. He claimed the move violates earlier cooperation agreements. In addition, officials accused Kyiv of slowing supply for political reasons. However, Reuters sought responses from Ukrainian authorities. Budapest also released 1.8 million barrels from reserves. This step aims to manage local shortages.
Alternative Routes Under Review
The JANAF pipeline may offer temporary relief. Still, transit terms remain under discussion. Energy firm MOL Group requested access to seaborne shipments. Tankers now head toward the Omisalj Terminal.
At present, non-Russian crude continues flowing through JANAF lines. Consequently, short term supply remains stable. The wider funding debate continues in Brussels. Leaders must now balance energy needs with financial support.
